The Price of Bitcoin is Less Volatile than the Shares of Amazon, Netflix and Nvidia

5 months ago

As you walk around the world as a good evangelizer of the crypto philosophy, it is often necessary to convince people who, with ignorance, immediately turn their backs when you talk about Bitcoin (BTC) as a financial alternative.

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As you walk around the world as a good evangelizer of the crypto philosophy, it is often necessary to convince people who, with ignorance, immediately turn their backs when you talk about Bitcoin (BTC) as a financial alternative.

Just at the time of writing this article, an analysis of CBOE Options emerged as a divine signal to indicate a comparatively valid and strong argument about the king cryptocurrency: Its price is less volatile than the actions of the American giant Amazon.

So the next time your friends or family outside the ecosystem inquire about whether it is feasible to allocate a reasonable percentage of your Bitcoin investments, you can tell them that you have chosen to put money in the flagship crypto currency because you do not have the patience to lose money with volatile assets like the actions, for example.

Some data

According to an educational analyst at the first US firm to trade derivatives for Bitcoin futures, the BTC has recently experienced lower price volatility than some of the Wall Street technology’s heavyweight shares such as Amazon, Netflix and the giant Nvidia chip.

In a statement reviewed in MarketWatch, the Senior Instructor of the CBOE Options Institute, Kevin Davitt, affirmed that the 20-day historical volatility (HV) of Bitcoin, that is, the rate of change in its daily price, has fallen to 31%. ,5%.

In contrast, the three giant American technology firms on Wall Street present 35% for Amazon its HV value, 40% the case of the chip maker Nvidia and Netflix is ​​almost twice as much for the same period with a high 52% of Historical volatility in their actions.

Currently, Bitcoins is almost as stable as the shares of Apple (AAPL), the world’s largest and best valued company. According to the report, AAPL, whose market capitalization is just over $ 1 trillion dollars, has 29.3 percent for the same period studied in Historical Volatility.

Moreover, Davitt noted that even if it is more volatile, the price of Bitcoin was more stable than the price of the shares of Cannabis producer Tilray, the face of the recent stock bubble of ‘pennis stock’ on Wall Street that the seller of shorts Citron Research called “more ridiculous than Bitcoin”.

Davitt speculated that it is possible that the cryptocurrency market is maturing and that the fall of the HV indicator signals a “structural floor” in the ecosystem. However, he warned that it is too early to conclude that this will be the normally definitive behavior.

“The important thing is that we are witnessing a maturation of the market. It is very soon to declare this as “normal” but the persistent range in at least the last weeks may give indications of a definitive structure. Time will tell”.

So if next time you ask for an opinion on whether it is feasible and place a portfolio in Bitcoins, do not hesitate and strongly affirm that it is more stable than buying shares of Amazon.